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Abstract

Increasing the use of public bus transportation and decreasing the use of private modes is the remedy for New Delhi's congested streets and polluted air. To achieve this, the provisioning of bus services in New Delhi should be privatized to reduce the financial burden on the government and augment capacity. Regulation of the privatized svstem will be needed to improve safety; prevent private operators from concentrating only on denser routes; improve reliability, punctuality, and other standards of quality; rationalize fares; and improve network design. This article discusses each of these goals and assesses the applicability in the New Delhi context of the different privatization models used internationally to meet these goals. Two composite strategies are recommended for meeting all of the goals; the gross cost option and the net cost option.